Namibian transport minister Veikko Nekundi has given airlines operating in that country six months to cut domestic airfares or face government regulation, warning he is prepared to amend laws to impose price controls.

Speaking at Aviation Week Africa 2026 in Windhoek, Nekundi cited a recent one-way fare of NAD9,000 Namibian dollars (USD545) from Windhoek Eros to Ondangwa, the Namibian business daily The Brief reported.

He said that domestic flights should not cost more than regional routes, noting that trips to Cape Town International in neighbouring South Africa are often significantly cheaper.

"If nothing changes, I will intervene," he warned, adding that airlines must act or face regulation similar to fare controls used in the Namibian taxi sector.

In a statement, privately owned FlyNamibia (WV, Windhoek Eros), the country's only scheduled airline, defended its pricing on the Ondangwa route, saying fares are largely driven by demand and costs beyond the airline’s control. It said 67% of its operating costs are externally determined, limiting its ability to lower prices.

FlyNamibia noted that Eros and Ondangwa airports have only one fuel supplier, creating a monopoly with no price competition, while fuel prices have risen sharply amid the Middle East conflict. It also pointed to taxes, levies, and regulatory charges which contribute to the overall price paid by passengers.

The airline said it had urged the government to help stimulate demand by purchasing more seats, arguing that higher passenger volumes would allow fares to fall over time.

The minister's warning comes as the government advances plans to revive a national carrier by the end of 2026, while Namibia and Botswana have mooted joining forces to launch a joint airline.

According to the Windhoek Observer newspaper, Nekundi also confirmed government plans to expand Windhoek International, including the construction of a third terminal, as part of efforts to boost capacity and strengthen the country’s aviation sector. He labelled the project a national priority as part of a broader strategy to improve connectivity and position Namibia as a regional hub.

The expansion will include upgrades to air navigation systems and is expected to increase passenger and cargo handling capacity, supporting growing international demand.